IR Approach

More more than 15 years, as in-house investor relations officer, as well as head of an investor relations consulting firm, I have specialized in creating and delivering effective investor communications.

To rise above the crowd, a company needs an effective IR strategy that ensures that shareholder value is recognized.

Small market capitalisation companies face many challenges in promoting their investment value proposition or "story" to the investment community.  The financial media focuses mainly on large cap companies that are part of indices and above the radar screen of institutional investors.

Not only is it difficult for them to get attention from the financial media, but even harder to obtain the kind of analyst coverage needed to attract strong and loyal institutional investors.

These problems are compounded by the fact that many lack the in-house resources and expertise needed to implement their own IR programs.

A well executed IR program can pay off for both the company and its investors, generating investor interest from a greater spectrum of investors with different time horizons and criteria. The more investors identify with the opportunity a company represent, the bigger the chances that its investment rating and share value would appreciate. Improved liquidity and a higher price to earnings ratio betters a company’s access to capital .

By helping a company build its shareholder base and retaining onto them for the long term, effective investor relations can also decrease volatility and boost investors' confidence in the company’s overall image, or corporate brand and sustainability.

When choosing an IR consultant, consider their:

• Experience in dealing with similar-size companies in your industry
• The Internet has revolutionized the way companies communicate with prospective investors and shareholders.  The consultant should know how to use push/pull Internet technologies, such as e-mail alerts and newsletters, interactive press releases, effective IR Web sites, webcasting and more.
• Creativy is important in optimising your investment marketing budget. Smallcap IR relies on impactful press releases to insightful annual reports and investor kits. An IR consultant must have the creative writing skills to turn your company’s story into an investment proposition that will get people’s attention. 
• An investor relations consultant is your company's representative in the investment community. Good chemistry with your board, staff and compatibiity with your company's culture are important.
• When you contract a consultant, you contract their network or contacts with the media, marketmakers, and financial analysts in your industry. Personal relationships and the ability to gain direct access to an important investment decision-maker can be very valuable.